The US-based electronic marketplace Tradeweb Markets reported a total trading volume of $37.2 trillion in October 2023. Its average daily volume (ADV) was $1.75 trillion, marking a staggering increase of 66.3% year-over-year (YoY). This record-breaking volume was fueled by expanding participation from various client sectors and sustained market volatility, partly driven by high interest rates.
The ADV for US government bonds surged 27.7% YoY, reaching $163.7 billion. European government bonds saw a substantial uptick, with ADV up 12% YoY, reaching $42.3 billion. Tradeweb's October 2023 report revealed impressive growth in several other key areas.
The mortgage market reported a boost of 13.4% YoY in ADV, hitting $193.8 billion. This gain was propelled by the heightened involvement of fast-money accounts and robust client engagement, the Nasdaq-listed operator mentioned.
US and European Credit ADV Soar
In the credit sector, the ADV for the electronic US credit demonstrated a substantial jump of 24.9% YoY, hitting $5.6 billion. The ADV for the European credit followed suit, rising 27.4% YoY to $2.1 billion. In contrast, the ADV for the Municipal bonds experienced a modest upturn of 2.1% YoY, reaching $472 million.
The ADV for Tradeweb's US ETF declined 6.5% YoY to $7.2 billion, while that for the European ETF leaped 24.1% YoY, reaching $2.6 billion. Institutional engagement in US ETFs remained strong, increasing 10% YoY. The expansion of European ETFs was attributed to stable market volumes.
In September, Tradeweb posted a total trading volume of $31.8 trillion and a record-breaking ADV of $1.57 trillion. The company recorded an upsurge of 30% YoY in ADV during this period. Despite a slightly lower trading volume compared to August, which reached $33 trillion, fewer trading days in September didn't hinder Tradeweb's high performance.
Tradeweb's Q3 Trading Volume Surpasses $90 Trillion
For the third quarter, Tradeweb reported a total trading volume of $90.4 trillion and a record ADV of $1.42 trillion, reflecting a noteworthy rise of 29.6% YoY. Additionally, the company highlighted preliminary average variable fees per million dollars of volume traded at $2.51.
In the rates market, the ADV for US government bonds rose 12.4% YoY to $145.3 billion in September, while the European government bond increased 1.9% to $42.4 billion. The credit market also witnessed significant improvement, with fully electronic US credit ADV surging 14.3% to $4.9 billion and European credit ADV improving 22.6% to $2.1 billion.
Similarly, in August, Tradeweb marked a growth of 41% YoY in monthly trading volume. According to the company, this surge includes a notable boost in the trading of government bonds and mortgages.
